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Area III: Performing ProceduresAUDSampling

CPA · Question 50 · Area III: Performing Procedures

An auditor is using non-statistical sampling to test the operating effectiveness of a control. The auditor selects a sample of 50 items and finds 0 deviations. The auditor concludes that the control is operating effectively. Which of the following statements is TRUE regarding this conclusion?

Answer options:

A.

The conclusion is statistically valid because the sample size was sufficient.

B.

The auditor can state with 95% confidence that the deviation rate is zero.

C.

The conclusion relies on the auditor's judgment to evaluate sampling risk, as it cannot be quantified mathematically.

D.

The auditor should have used statistical sampling to support an audit opinion.

How to approach this question

Statistical vs Non-Statistical: Statistical = Math (Quantified Risk). Non-Statistical = Judgment (Qualitative Risk). Both are okay.

Full Answer

C.The conclusion relies on the auditor's judgment to evaluate sampling risk, as it cannot be quantified mathematically.✓ Correct
C
A key difference between statistical and non-statistical sampling is that statistical sampling allows the auditor to measure/quantify sampling risk. In non-statistical sampling, the auditor must use professional judgment to evaluate whether the evidence is sufficient.

Common mistakes

Thinking Non-Statistical sampling is invalid or 'worse'. It's just different.
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